[Introduced March 8, 2017;
Referred
to the Committee on the Judiciary]

A BILL to amend and
reenact §3-8-1, §3-8-1a, §3-8-2, §3-8-2b, §3-8-2c, §3-8-5, §3-8-5a, §3-8-5b,§3-8-5d,
§3-8-5f, §3-8-7, §3-8-8, §3-8-9, §3-8-10, §3-8-11 and §3-8-12 of the Code of
West Virginia, 1931, as amended, all relating generally to the regulation and
control of financing elections; modifying findings and definitions; modifying
provisions relating to receipts and expenditures in elections, electioneering
communications, reporting requirements and financial statements; modifying
offenses and criminal penalties; modifying provisions relating to loans to
candidates, organizations or persons for election purposes; and modifying
provisions relating to corporate contributions and use of certain contributions.

Be it enacted by the
Legislature of West Virginia:

That §3-8-1, §3-8-1a, §3-8-2,
§3-8-2b, §3-8-2c, §3-8-5, §3-8-5a, §3-8-5b,
§3-8-5d, §3-8-5f, §3-8-7, §3-8-8, §3-8-9,
§3-8-10, §3-8-11 and §3-8-12 of the Code of West Virginia, 1931, as amended, be
amended and reenacted, all to read as follows:

ARTICLE 8. REGULATION
AND CONTROL OF ELECTIONS.

§3-8-1. Provisions to
regulate and control elections.

(a) The Legislature finds
that:

(1) West Virginia’s
population is 1,808,344, ranking 37th among the fifty states.

(2) State Senate
districts have a population of approximately one hundred six thousand three
hundred seventy-three, and the average Delegate district has a population of
approximately thirty-one thousand, one hundred seventy-eight. The size of these
districts is substantially smaller than the United States Senatorial and
Congressional Districts.

(3) When the relatively
small size of the state’s legislative and other voting districts is combined
with the economics and typical uses of various forms of electioneering
communication, history shows that nonbroadcast media is and will continue to be
a widely used means of making campaign related communications to target
relevant audiences. Consequently, nonbroadcast communications are prevalent
during elections.

(4) Disclosure
provisions are appropriate legislative weapons against the reality or
appearance of improper influence stemming from the dependence of candidates on
large campaign contributions, and the ceilings imposed accordingly serve the
basic governmental interest in safeguarding the integrity of the electoral process
without directly impinging upon the rights of individual citizens and
candidates to engage in political debate and discussion.

(1) When narrowly
tailored to minimize any infringement on the right to free speech guaranteed by
the United States and West Virginia Constitutions or upon the rights to engage
in political debate and discussion, disclosure of contributions and
expenditures by entities that engage in electoral advocacy is an appropriate
means to safeguard the electoral process against the appearance of improper
influence from large campaign expenditures.

(5)(2) Disclosure of expenditures serve a
substantial governmental interest in informing the electorate and preventing
the corruption of or appearance of corruption in the political process.

(6)(3) Disclosure by persons and entities that
make expenditures for communications that expressly advocate the election or
defeat of clearly identified candidates or perform its functional
equivalent, is a reasonable and minimally restrictive method of furthering
First Amendment values by public exposure of the state election system.

(7) Failing to regulate nonbroadcast
media messages would permit those desiring to influence elections to avoid the
principles and policies that are embodied in existing state law.

(8) The regulation of
the various types of nonbroadcast media in addition to broadcast media, is
tailored to meet the circumstances found in the State of West Virginia.

(9) Nonbroadcast media
such as newspapers, magazines or other periodicals have proven to be effective
means of election communication in West Virginia. Broadcast, satellite and nonbroadcast
media have all been used to influence election outcomes.

(10) Certain nonbroadcast
communications, such as newspaper inserts, can be more effective campaign
methods than broadcast media because such communications can be targeted to
registered voters or historical voters in the particular district. In contrast,
broadcasted messages reach all of the general public, including person
ineligible to vote in the district.

(11) Nonbroadcast media
communications in the final days of a campaign can be particularly damaging to
the public’s confidence in the election process because they reduce or make
impossible an effective response.

(12) Identifying those
funding nonbroadcast media campaigns in the final days of a campaign may at
least permit voters to evaluate the credibility of the message.

(13)(4) In West Virginia, contributions up to the
amounts specified in this article allow contributors to express their opinions,
level of support and their affiliations.

(14) In West Virginia,
campaign expenditures by entities and persons who are not candidates have been
increasing. Public confidence is eroded when substantial amounts of such money,
the source of which is hidden or disguised, is expended. This is particularly
true during the final days of a campaign.

(15) In West Virginia,
contributions to political organizations, defined in Section 527(e)(1) of the
Internal Revenue Code of 1986, substantially larger than the amounts permitted
to be received by a candidate’s political committee have been recorded and are
considered by the Legislature to be large contributions.

(16) Independent expenditures
intended to influence candidates’ campaigns in the state are increasingly
utilizing nonbroadcast media to support or defeat candidates.

(17)(5) Identification of persons or entities
funding politicalelectoral advocacy advertisements assists in
enforcement of the contribution and expenditure limitations established by this
article and simply informs voters of the actual identities of persons or
entities advocating the election or defeat of candidates.

(18)(6) Identification of persons or entities funding
political advertisementselectoral advocacy allows voters to
evaluate the credibility of the message contained in the advertisement.

(19)(7) Disclosure of the identity of persons or
entities funding political communications regarding candidateselectoral
advocacy bolsters the right of listeners to be fully informed.

(b) Political campaign
contributions, receipts and expenditures of money, advertising, influence and
control of employees, and other economic, political and social control factors
incident to primary, special and general elections shall be regulated and
controlled by the provisions of this article and other applicable provisions of
this chapter.

§3-8-1a. Definitions.

As used in this article,
the following terms have the following definitions:

(1) “Ballot issue” means a Constitutional
amendment, special levy, bond issue, local option referendum, municipal charter
or revision, an increase or decrease of corporate limits or any other question
that is placed before the voters for a binding decision.

(2) "Ballot issue
committee" means a political action committee that advocates or opposes a
ballot issue. The threshold amount for ballot issue committees is $5,000 for
contributions or political expenditures.

(2)(3) “Billboard advertisement” means a
commercially available outdoor advertisement, sign or similar display regularly
available for lease or rental to advertise a person, place or product.

(3)(4) “Broadcast, cable or satellite
communication” means a communication that is publicly distributed by a
television station, radio station, cable television system or satellite system.

(4)(5) “Candidate” means an individual who:

(A) Has filed a certificate
of announcement under section seven, article five of this chapter or a municipal
charter;

(B) Has filed a declaration
of candidacy under section twenty-three, article five of this chapter;

(C) Has been named to fill
a vacancy on a ballot; or

(D) Has declared a write-in
candidacy or otherwise publicly declared his or her intention to seek
nomination or election for any state, district, county or municipal office or
party office to be filled at any primary, general or special election.

(5)(6) “Candidate’s committee” means a political
committee established with the approval of or in cooperation with a candidate
or a prospective candidate to explore the possibilities of seeking a particular
office or to support or aid his or her nomination or election to an office in
an election cycle. If a candidate directs or influences the activities of more
than one active committee in a current campaign, those committees shall be
considered one committee for the purpose of contribution limits.

(7) "Caucus
campaign committee" means one of the following caucus groups that receive
contributions and make political expenditures to support or oppose one or more
specific candidates or slates of candidates for nomination or election, or a
committee:

(1) House political
party caucus campaign committee; and

(2) Senate political
party caucus campaign committee.

(6)(8) “Clearly identified” means that the name,
nickname, photograph, drawing or other depiction of the candidate appears or
the identity of the candidate is otherwise apparent through an unambiguous
reference, such as “the Governor”, “your Senator” or “the incumbent” or
through an unambiguous reference to his or her status as a candidate, such as
“the Democratic candidate for Governor” or “the Republican candidate for
Supreme Court of Appeals”.

(7)(9) “Contribution” means a gift, subscription,
loan, assessment, payment for services, dues, advance, donation, pledge,
contract, agreement, forbearance or promise of money or other tangible thing of
value, whether conditional or legally enforceable, or a transfer of money or
other tangible thing of value to a person, made for the purpose of
influencing the nomination, election or defeat of a candidategiven to
any entity that is registered or is required to register as a political action
committee or political committee at the time the contribution is made, or that
is given to be used specifically for making contributions to other recipients
for making political expenditures or any political expenditure that is made in
coordination with a candidate, candidate committee, measure committee, or party
committee. An offer or tender of a contribution is not a contribution if
expressly and unconditionally rejected or returned. A contribution does not
include volunteer personal services provided without compensation or any
unreimbursed payment for expenses related to such volunteer activity; any cost
incurred for covering or carrying a news story, commentary, or editorial by a
broadcasting station or cable television operator, Internet website, or
newspaper or other periodical publication, including an Internet or other
electronic publication, provided that the cost for the news story, commentary,
or editorial is not paid for by, and the medium is not owned or controlled by,
a candidate, candidate committee, measure committee, party committee, or other
political committee; and the payment of or provision of legal and accounting
services rendered to a candidate, candidate committee, ballot issue committee,
party committee, or other political committee if the services are solely for
the purpose of ensuring compliance with or challenging the Constitutional
validity or interpretation of the provisions of this chapter:Provided,
That a nonmonetary contribution is to be considered at fair market value for
reporting requirements and contribution limitations.

(8)(10) “Corporate political action committee”
means a political action committee that is a separate segregated fund of a
corporation that may only accept contributions from its restricted group as
outlined by the rules of the State Election Commission.

(A) Costs charged by a
vendor, including, but not limited to, studio rental time, compensation of
staff and employees, costs of video or audio recording media and talent,
material and printing costs and postage; or

(B) The cost of airtime on
broadcast, cable or satellite radio and television stations, the costs of
disseminating printed materials, studio time, use of facilities and the charges
for a broker to purchase airtime.

(10)(12) “Disclosure date” means either of the
following:

(A) The first date during
any calendar year on which any electioneering communication is disseminated
after the person paying for the communication has spent a total of $5,000 or
more for the direct costs of purchasing, producing or disseminating
electioneering communications; or

(B) Any other date during
that calendar year after any previous disclosure date on which the person has
made additional expenditures totaling $5,000 or more for the direct costs of
purchasing, producing or disseminating electioneering communications.

(11)(13) “Election” means any primary, general, or
special election or ballot issue conducted under the provisions of this
code or under the charter of any municipality at which the voters nominate or
elect candidates for public office, or vote on a constitutional amendment,
special levy, bond issue, local option referendum, municipal charter or
revision, an increase or decrease of corporate limits or any other question
that is placed before the voters for a binding decision. For purposes of
this article, each primary, general, special ballot issue or local
election constitutes a separate election. This definition is not intended to
modify or abrogate the definition of the term “nomination” as used in this
article.

(12)(14) (A) “Electioneering communication” means
any paid communication made by broadcast, cable or satellite signal, mass
mailing, telephone bank or billboard advertisement or published in
any newspaper, magazine or other periodical that:

(i) Refers to a clearly
identified candidate for Governor, Secretary of State, Attorney General,
Treasurer, Auditor, Commissioner of Agriculture, Supreme Court of Appeals or the
Legislature;

(ii) Is publicly
disseminated within:

(I) Thirty days before athe primary election day at which the nomination for office
sought by the candidate is to be determined; or

(II) Sixty days before athe general or special election day at which the office sought by
the candidate is to be filled; and

(iii) Is targeted to the
relevant electorate. Provided, That for purposes of the
general election of 2008 the amendments to this article are effective October
1, 2008

(B) “Electioneering communication”
does not include:

(i) A news story,
commentary or editorial disseminated through the facilities of any broadcast,
cable or satellite television or radio station, newspaper, magazine or other
periodical publication not owned or controlled by a political party, political
committee or candidate: Provided, That a news story disseminated through
a medium owned or controlled by a political party, political committee or
candidate is nevertheless exempt if the news is:

(I) A bona fide news
account communicated in a publication of general circulation or through a
licensed broadcasting facility; and

(II) Is part of a general
pattern of campaign-related news that gives reasonably equal coverage to all
opposing candidates in the circulation, viewing or listening area;

(ii) Activity by a
candidate committee, party executive committee or caucus committee, or a
political action committee that is required to be reported to the State
Election Commission or the Secretary of State as an expenditure pursuant to
section five of this article or the rules of the State Election Commission or
the Secretary of State promulgated pursuant to such provision: Provided,
That independent expenditures by a party executive committee or caucus
committee or a political action committee required to be reported pursuant to
subsection (b), section two of this article are not exempt from the reporting
requirements of this section;

(ii) A communication
that constitutes an expenditure or an independent expenditure under this
chapter;

(iii) A candidate debate or
forum conducted pursuant to rules adopted by the State Election Commission or
the Secretary of State or a communication promoting that debate or forum made
by or on behalf of its sponsor;

(iv) A communication paid
for by any organization operating under Section 501(c)(3) of the Internal
Revenue Code of 1986;

(v) A communication made
while the Legislature is in session which, incidental to promoting or opposing
a specific piece of legislation pending before the Legislature, urges the
audience to communicate with a member or members of the Legislature concerning
that piece of legislation;

(vi) A statement or
depiction byAny communication by persons made in the regular course and
scope of their business or any communication made by a membership
organization in existence prior to the date on which the individual named or
depicted became a candidate, made in a newsletter or other communication
distributed only to bona fidesolely to its members of that
organizationand their families,

(vii) A communication made
solely for the purpose of attracting public attention to a product or service
offered for sale by a candidate or by a business owned or operated by a
candidate which does not mention an election, the office sought by the candidate
or his or her status as a candidate; or

(viii) A communication,
such as a voter’s guide, which refers to all of the candidates for one or more
offices, which contains no appearance of endorsement for or opposition to the
nomination or election of any candidate and which is intended as nonpartisan
public education focused on issues and voting history;

(ix) A communication
exclusively between an organization formed under Section 501(c)(6) of the
Internal Revenue Code and its members; or

(x) Any communication
that refers to any candidate only as part of the popular name of a bill or
statute.

(13)(15) “Expressly advocating” means any
communication that:

(A) Uses phrases such as
“vote for the Governor”, “reelect your Senator”, “support the Democratic
nominee for Supreme Court”, “cast your ballot for the Republican challenger for
House of Delegates”, “Smith for House”, “Bob Smith in ‘04”, “vote ProLife” or
“vote ProChoice” accompanied by a listing of clearly identified candidates
described as ProLife or ProChoice, “vote against Old Hickory”, “defeat”
accompanied by a picture of one or more candidates, “reject the incumbent”; or

(B) Communications of
campaign slogans or individual words, that in the context of only the
communication itself, can have no other reasonable meaning other
than to urge the election or defeat of one or more clearly identified
candidates or the passage or defeat of one or more ballot issues, such
as posters, bumper stickers, advertisements, etc., which say “Smith’s the One”,
“Jones ‘06”, “Baker”, etc. or

(C) Is susceptible of no
reasonable interpretation other than as an appeal to vote for or against a
specific candidate.

(14)(16) “Financial agent” means any individual
acting for and by himself or herself, or any two or more individuals acting
together or cooperating in a financial way to aid or take part in the
nomination or election of any candidate for public office, or to aid or promote
the success or defeat of any political party at any election.

(15)(17) “Fund-raising event” means an event such
as a dinner, reception, testimonial, cocktail party, auction or similar affair
through which contributions are solicited or received by such means as the
purchase of a ticket, payment of an attendance fee or by the purchase of goods
or services.

(16)(18) “Independent expenditure” means an
expenditure by a person:

(A) Expressly advocating
the election or defeat of a clearly identified candidate; and

(B) That is not made in
concert or cooperation with or at the request or suggestion of such candidate,
his or her agents, the candidate’s authorized political committee or a
political party committee or its agents.

Supporting or opposingExpressly advocating the election of a clearly
identified candidate includes supporting or opposingexpressly
advocating the election or defeat of candidates of a political
party. An expenditure whichthat does not meet the criteria for
an independent expenditure is considered a contribution.

(19) “In concert or
cooperation with or at the request or suggestion of” means that a candidate or
his or her agent consulted with the sender regarding the content, timing,
place, nature or volume of a particular communication or communication to be
made.

(17)(20) “Mass mailing” means a mailing by United
States mail, facsimile or electronic mail of more than five hundred pieces of
mail matter of an identical or substantially similar nature within any thirty-day
period. For purposes of this subdivision, “substantially similar” includes
communications that contain substantially the same template or language, but
vary in nonmaterial respects such as communications customized by the
recipient's name, occupation or geographic location.

(18)(21) “Membership organization” means a group
that grants bona fide rights and privileges, such as the right to vote, to
elect officers or directors and the ability to hold office, to its membersmembership
rights or privileges in its duly adopted bylaws and which uses a majority
of its membership dues and contributions for purposes other than
political purposes. “Membership organization” does not include organizations
that grant membership upon receiving a contribution.

(19)(22) “Name” means the full first name, middle
name or initial, if any, and full legal last name of an individual and the full
name of any association, corporation, committee or other organization of
individuals, making the identity of any person who makes a contribution
apparent by unambiguous reference.

(20)(23) “Person” means an individual,
corporation, partnership, committee, association and any other organization or
group of individuals.

(21)(24) “Political action committee” means a
committee organized by one or more persons for the purpose of supporting or
opposing the nomination or election of one or more candidatesany group
of two or more individuals unrelated by marriage, or any other organization or
entity, that makes total contributions or political expenditures which are made
for political purposes of more than the threshold amount during any calendar
year and the major purpose of which is the making of political contributions or
expenditures which are made for political purposes. A group or entity has the
major purpose of making contributions or political expenditures if, during any
calendar year, the total amount of contributions or political expenditures that
it makes exceeds half of its total spending on all program activities,
including contributions or political expenditures. Total spending shall not
include fundraising and administrative expenses. In any law-enforcement
proceeding, investigation, or litigation concerning a group or entity’s alleged
failure to register as a political committee, its principal purpose shall not
be considered before it has first been established by the applicable standard
of evidence that the group or entity has made total contributions or political
expenditures of more than the threshold amount. The threshold amount shall be
$5,000 for contributions or political expenditures for a candidacy or
candidacies for statewide office and $1,000 for a candidacy or candidacies for the
State Senate or House of Delegates. The following are types of political
action committees:

(A) A corporate political
action committee, as that term is defined by subdivision (8)(10)
of this section;

(B) A political action
committee that is a separate segregated fund of a membership organization,
as that term is defined by subdivision (18)(20) of this section,
and that organization may only accept contributions from its restricted
group as outlined by the rules of the State Election Commission;

(C) An unaffiliated
political action committee, as that term is defined by subdivision (29)(32)
of this section; and

(D) A caucus campaign
committee as that term is defined in subdivision (7) of this section.

(i) Any communications
expressly advocating for the election, retention, or defeat of a clearly
identified candidate or candidates affiliated with a political party, or the
passage or defeat of a ballot issue; or

(ii) The republication
of any candidate’s, candidate committee’s, ballot issue committee’s, party
committee’s, or political committee’s campaign materials.

(B) Notwithstanding
paragraph (A) of this subdivision the following are not “political expenditures”:

(i) The republication of
materials in a voter guide;

(ii) The republication
of campaign materials commenting or explaining a candidate’s position on any
issue and that does not expressly advocate the election or defeat of a
candidate is not a political expenditure;

(iii) The republication
of publicly available photographs or video footage of a candidate, and that is
devoid of any text or audio content in or from the original material, shall not
constitute a political expenditure; and

(iv) Anything that is
excluded from the definition of a “political contribution.”

(23)(27) “Political party” means a political party
as that term is defined by section eight, article one of this chapter or any
committee established, financed, maintained or controlled by the party,
including any subsidiary, branch or local unit thereof and including national
or regional affiliates of the party.

(24)(28) “Political party committee” means a
committee established by a political party or political party caucus for the
purposes of engaging in the influencing of the election, nomination or defeat
of a candidate in any election.

(25)(29) “Political purposes” means supporting or
opposing the nomination, election or defeat of one or more candidates or the
passage or defeat of a ballot issue, supporting the retirement of the debt of a
candidate or political committee or the administration or activities of an
established political party or an organization which has declared itself a
political party and determining the advisability of becoming a candidate under
the precandidacy financing provisions of this chapter.

(26)(30) “Targeted to the relevant electorate”
means a communication which refers to a clearly identified candidate for
statewide office or the Legislature and which can be received by one hundred
forty thousand or more individuals in the state in the case of a candidacy for
statewide office, eight thousand two hundred twenty or more individuals in the
district in the case of a candidacy for the State Senate and two thousand four
hundred ten or more individuals in the district in the case of a candidacy for
the House of Delegates.

(27)(31) “Telephone bank” means telephone calls
that are targeted to the relevant electorate, other than telephone calls made
by volunteer workers, regardless of whether paid professionals designed the
telephone bank system, developed calling instructions or trained volunteers.

(28)(32) “Two-year election cycle” means the
twenty-four month period that begins the day after a general election and ends
on the day of the subsequent general election.

(29)(33) “Unaffiliated political action committee”
means a political action committee that is not affiliated with a corporation or
a membership organization.

§3-8-2. Accounts for
receipts and expenditures in elections; requirements for reporting independent
expenditures.

(a) Except for: (1)
Candidates for party committeeman and committeewoman; and (2) candidates
for delegate to the national presidential nominating convention for a political
party; and (3) federal committees required to file under the provisions of 2
U.S.C. §43452 U.S.C. 30104, all candidates for nomination or
election and all persons supporting, aiding or opposing the nomination,
election or defeat of any candidatepolitical committees shall keep
for a period of six months records of receipts and expenditures which are made
for political purposes. All of the receipts and expenditures are subject to
regulation by the provisions of this article. Verified financial statements of
the records and expenditures shall be made and filed as public records by all
candidates and by their financial agents, representatives or any person acting
for and on behalf of any candidate and by the treasurers of all political party
committees.

(b) (1) In addition to any
other reporting required by the provisions of this chapter, any person who
makes independent expenditures in an aggregate amount or value in excess of
$1,000 during a calendar year shall file a disclosure statement, on a form prescribed
by the Secretary of State, that contains all of the following information:

(A) The name of (i) the
person or entity making the expenditure; (ii) the name of any person
sharing or exercising direction or control over the activities of the person
making the expenditureif the person is an entity, the names and a
mailing address for each officer and director and the highest compensated
employee of the entity and (iii) the name of the custodian of the books and
accounts of the person making the expenditure;

(B) If the person making
the expenditure is not an individual, the principal place of business of the
partnership, corporation, committee, association, organization or group which
made the expenditure;

(C) The amount of each
expenditure of more than $1,000 made during the period covered by the statement
and the name of the person to whom the expenditure was made;

(D) The elections to which
the independent expenditure pertain, the names, if known, of the candidates
referred to or to be referred to therein, whether the expenditure is intended
to support or oppose the identified candidates and the amount of the total
expenditure reported pursuant to paragraph (C) of this subdivision spent to
support or oppose each of the identified candidates;

(E) The name and address of
any person who contributed a total of more than $250$1,000 between
the first day of the preceding calendar year, and the disclosure date, and
whose contributions were made for the explicit purpose of furthering theany independent expenditure or independent expenditures.

(F) With regard to the
contributors required to be listed pursuant to paragraph (E) of this
subdivision, the statement shall also include:

(i) The month, day and year
that the contributions of any single contributor exceeded $250$1,000;

(ii) If the contributor is
a political action committee, the name and address the political action
committee registered with the Secretary of State, county clerk or municipal
clerk;

(iii) If the contributor is
an individual, the name and address of the individual, and the person must
request from the contributor his or her occupation, the name and address of
the individual's current employer, if any, or, if the individual is self-employed,
the name and address of the individual's business, if any;

(iv) A description of the
contribution, if other than money; and

(v) The value in dollars
and cents of the contribution.

(G)(1) A certification that
such independent expenditure was not made in cooperation, consultation, or
concert, with, or at the request or suggestion of, any candidate or any
authorized committee or agent of such candidate.

(2) Any person who makes a
contribution for the purpose of funding an independent expenditure under this
subsection shall, at the time the contribution is made, provide his or her
name, address, occupation, his or her current employer, if any, or, if the
individual is self-employed, the name of his or her business, if any, to the
recipient of the contribution.

(3) The Secretary of State
shall expeditiously prepare indices setting forth, on a candidate-by-candidate
basis, all independent expenditures separately, made by, or on behalf of, or
for, or against each candidate, as reported under this subsection, and for
periodically publishing such indices on a timely preelection basis.

(c) (1) A person, including
a political committee, who makes or contracts to make independent expenditures
aggregating $1,000$5,000 or more for any statewide, legislative
or multicounty judicial candidate or $500$1,000 or more for any county
office, single-county judicial candidate, committee supporting or opposing a
candidate on the ballot in more than one county, or any municipal candidate on
a municipal election ballot, after the fifteenth day, but more than twelve
hours, before the date of an election, shall file a report on a form prescribed
by the Secretary of State, describing the expenditures within twenty-four
hours: Provided, That a person making expenditures in the amount of $1,000$5,000 or more for any statewide or $1,000 for any legislative
candidate on or after the fifteenth day but more than twelve hours before the
day of any election shall report such expenditures in accordance with section
two-b of this article and shall not file an additional report as provided
herein.

(2) Any person who files a
report under subdivision (1) of this subsection, shall file an additional
report within twenty-four hours after each time the person makes or contracts
to make independent expenditures aggregating an additional $500$1,000
with respect to the same election, for any county office, single-county
judicial candidate, committee supporting or opposing a candidate on the ballot
in more than one county, or any municipal candidate on a municipal election
ballot, as that to which the initial report relates.

(d) (1) A person, including
a political committee, who makes or contracts to make independent expenditures
aggregating $10,000 or more at any time up to and including the fifteenth day
before the date of an election shall file a report on a form prescribed by the
Secretary of State, describing the expenditures within forty-eight hours.

(2) A person who files a
report under subdivision (1) of this subsection, the person shall file an
additional report within forty-eight hours after each time the person makes or
contracts to make independent expenditures aggregating an additional $10,000
with respect to the same election as that to which the initial report relates.

(e) Any communication paid
for by an independent expenditure must include a clear and conspicuous public
notice that:

(1) Clearly states that the
communication is not authorized by the candidate or the candidate's committee;
and

(2) Clearly identifies the
person making the expenditure: Provided, That if the communication
appears on or is disseminated by broadcast, cable or satellite transmission,
the statement required by this subsection must be both spoken clearly and
appear in clearly readable writing at the end of the communication.

(f) Any person who has
spent a total of $5,000 or more for the direct costs of purchasing, producing
or disseminating electioneering communications during any calendar year shall
maintain all financial records and receipts related to such expenditure for a
period of six months following the filing of a disclosure pursuant to
subsection (a) of this section and, upon request, shall make such records and
receipts available to the Secretary of State or county clerk for the purpose of
an audit as provided in section seven of this article.

(g) Any person who willfully
fails to comply with this section is guilty of a misdemeanor and, upon
conviction thereof, shall be fined not less than $500, or confined in jail for
not more than one year, or both fined and confined.

(h) (1) Any person who is
required to file a statement under this section may file the statement by
facsimile device or electronic mail, in accordance with such rules as the
Secretary of State may promulgate.

(2) The Secretary of State
shall make any document filed electronically pursuant to this subsection
accessible to the public on the Internet not later than twenty-four hours after
the document is received by the secretary.

(3) In promulgating a rule
under this subsection, the secretary shall provide methods, other than
requiring a signature on the document being filed, for verifying the documents
covered by the rule. Any document verified under any of the methods shall be
treated for all purposes, including penalties for perjury, in the same manner
as a document verified by signature.

(i) This section does not
apply to candidates for federal office.

(j) The Secretary of State
may promulgate emergency and legislative rules, in accordance with the
provisions of chapter twenty-nine-a of this code, to establish guidelines for
the administration of this section.

§3-8-2b. Disclosure of electioneering communication.

(a) Every person who has
spent:

(1) A total of $5,000 or
more for the direct costs of purchasing, producing or disseminating
electioneering communications during any calendar year; or

(2) A total of $1,000 or
more on or after the fifteenth day but more than twelve hours before the day of
any election for the direct costs of purchasing, producing or disseminating
electioneering communications during any calendar year shall, within twenty-four
hours of each disclosure date, file with the Secretary of State a statement
which contains all of the information listed in subsection (b) of this section.

(b)(1) The name of the
person making the expenditure, the name of any person sharing or exercising
direction or control over the activities of the person making the expenditure(i) if the person is an entity, the names and a mailing address for each
officer and director and the highest compensated employee of the entity, and
(ii) the name of the custodian of the books and accounts of the person
making the expenditure;

(2) If the person making
the expenditure is not an individual, the principal place of business of the
partnership, committee, association, organization or group which made the
expenditure;

(3) The amount of each
expenditure of more than $1,000 made for electioneering communications during
the period covered by the statement and the name of the person to whom the
expenditure was made;

(4) The elections to which
the electioneering communications pertain, the names, if known, of the
candidates referred to or to be referred to therein, whether the electioneering
communication is intended to support or oppose the identified candidates and
the amount of the total expenditure reported in subdivision (3) of this
subsection spent to support or oppose each of the identified candidates; and

(5) The names and addresses
of any contributors who contributed a total of more than $1,000 between the
first day of the preceding calendar year and the disclosure date and whose
contributions were used to pay formade for the explicit purpose of
financing any electioneering communication or electioneering
communications.

(c) With regard to the
contributors required to be listed pursuant to subdivision (5), subsection (b)
of this section, the statement shall also include:

(1) The month, day and year
that the contributions of any single contributor exceeded $250$1,000;

(2) If the contributor is a
political action committee, the name and address the political action committee
registered with the State Election Commission;

(3) If the contributor is
an individual, the name and address of the individual, and the person filing
the statement must request from the contributor his or her occupation, the
name and address of the individual's current employer, if any, or, if the
individual is self-employed, the name and address of the individual's business,
if any;

(4) A description of the
contribution, if other than money;

(5) The value in dollars
and cents of the contribution.

(d) (1) Any person who
makes a contribution for the purpose of funding the direct costs of purchasing,
producing or disseminating an electioneering communication under this section
shall, at the time the contribution is made, provide his or her name and
address to the recipient of the contribution;

(2) Any individual who
makes contributions totaling $250 or more between the first day of the
preceding calendar year and the disclosure date for the purpose of funding the
direct costs of purchasing, producing or disseminating electioneering
communications shall, at the time the contribution is made, provide the name of
his or her occupation and of his or her current employer, if any, or, if the
individual is self-employed, the name of his or her business, if any, to the
recipient of the contribution

(e)(d) In each electioneering communication, a
statement shall appear or be presented in a clear and conspicuous manner that:

(1) Clearly indicates that
the electioneering communication is not authorized by the candidate or the
candidate's committee; and

(2) Clearly identifies the
person making the expenditure for the electioneering communication: Provided,
That if the electioneering communication appears on or is disseminated by
broadcast, cable or satellite transmission, the statement required by this
subsection must be both spoken clearly and appear in clearly readable writing
at the end of the communication.

(f)(e) Within five business days after receiving
a disclosure of electioneering communications statement pursuant to this
section, the Secretary of State shall make information in the statement
available to the public through the Internet.

(g)(f) For the purposes of this section, a person
is considered to have made an expenditure when the person has entered into a
contract to make the expenditure at a future time.

(h)(g) The Secretary of State is hereby directed
to propose legislative rules and emergency rules implementing this section for
legislative approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code.

(i)(h) If any person, including, but not limited
to, a political organization (as defined in Section 527(e)(1) of the Internal
Revenue Code of 1986) makes, or contracts to make, any expenditure for
electioneering communications which is coordinated with and made with the
cooperation, consent or prior knowledge of a candidate, candidate's committee
or agent of a candidate, the expenditure shall be treated as a contribution and
expenditure by the candidate. If the expenditure is coordinated with and made
with the cooperation or consent of a state or local political party or
committee, agent or official of that party, the expenditure shall be treated as
a contribution to and expenditure by the candidate's party.

(j)(i) This section does not apply to candidates
for federal office. This section is not intended to restrict or to expand any
limitations on, obligations of or prohibitions against any candidate,
committee, agent, contributor or contribution contained in any other provision
of this chapter.

(a) Notwithstanding the
definitions contained in section one-a of this article, for purposes of this
section:

(1)
"Contribution" means a gift, subscription, loan, assessment, payment
for services, dues, advance, donation, pledge, contract, agreement, forbearance
or promise of money or other tangible thing of value, whether conditional or
legally enforceable, or a transfer of money or other tangible thing of value to
a person, made for the purpose of funding the rental, purchase, construction or
financing of the lease, purchase or construction of a party headquarters, and
for the utilities, maintenance, furniture, fixtures and equipment for the party
headquarters. An offer or tender of a contribution is not a contribution if
expressly and unconditionally rejected or returned. A contribution does not
include volunteer personal services provided without compensation: Provided,
That a nonmonetary contribution is to be considered at fair market value for
reporting requirements and contribution limitations.

(2) "Party
headquarters" means a physical structure or structures that is the
physical location of the office of a state executive committee of a political
party.

(3) "Party
headquarters committee" includes any person, organization or group of
persons soliciting or receiving contributions for the purpose of funding the
lease, purchase, construction or financing of the lease, purchase or
construction of a party headquarters, including utilities, maintenance,
furniture, fixtures and equipment for the party headquarters.

(b) A political party may
establish a party headquarters committee to solicit and receive contributions for
the exclusive purpose of the purchase, construction or lease of an office
building or financing of the lease, purchase or construction of a party
headquarters, including utilities, maintenance, furniture, fixtures and
equipment, to be used as a state political party's headquarters.

(c) Contributions received
pursuant to this section may not be expended for:

(1) The purchase,
construction or lease of satellite offices or other facilities;

(2) Utilities, maintenance,
furniture, fixtures, equipment or signage for satellite offices or other
facilities; or

(3) Political purposes.

(d) A party headquarters
committee may not accept contributions in excess $10,000, in the aggregate,
from any person for the purposes of this section.

(e) A party headquarters
committee may not receive contributions or make expenditures for the purpose of
funding the rental, purchase, construction or financing of a state executive
committee headquarters in excess of $1 million.

(f) (1) A party
headquarters committee, financial agent or any person or officer acting on
behalf of the committee that is subject to the provisions of this section,
shall file a verified financial statement with the Secretary of State, on a
form prescribed by the secretary, within ninety days of any contribution or
expenditure in excess of $250$1,000.

(2) Each financial
statement shall contain, but is not limited to, the following information:

(A) The name, residence and
mailing address and telephone number of the party headquarters committee,
financial agent or any person or officer acting on behalf of the committee,
filing the financial statement.

(B) The balance of cash and
any other sum of money on hand at the beginning and the end of the period
covered by the financial statement.

(C) The name of any person
making a contribution, the amount of the contribution, and the residence and
mailing address of the contributor.

(D) The total amount of
contributions received during the period covered by the financial statement.

(E) The name, residence and
mailing address of any individual or the name and mailing address of each
lending institution making a loan, the amount of any loan received, the date
and terms of the loan, including the interest and repayment schedule, and a
copy of the loan agreement.

(F) The name, residence and
mailing address of any individual or the name and mailing address of each
partnership, firm, association, committee, organization or group having
previously made or cosigned a loan for which payment is made or a balance is
outstanding at the end of the period, together with the amount of repayment on
the loan made during the period and the balance at the end of the period.

(G) The total outstanding
balance of all loans at the end of the period.

(H) The name, residence and
mailing address of any person to whom each expenditure was made or liability
incurred, together with the amount and purpose of each expenditure or liability
incurred and the date of each transaction.

(I) The total amount of
expenditures made during the period covered by the financial statement.

(3) The Secretary of State
shall file and retain the statements as public records for not less than six
years.

(g) Contributions received
by a party headquarters committee may be contributed to any educational,
cultural or charitable organization.

(h) The Secretary of State
shall propose rules for legislative approval in accordance with the provisions
of article three, chapter twenty-nine-a of this code to effectuate the
provisions of this section.

§3-8-5. Detailed
accounts and verified financial statements required.

(a) Every candidate treasurer,
person and association of persons, organization of any kind, including every
corporation, directly, or by an independent expenditure, supporting a political
committee established pursuant to paragraph (C), subdivision (1), subsection
(b), section eight of this article or engaging in other activities permitted by
this section and also including the treasurer or equivalent officer of the
association or organization, expressly advocating the election or defeat of a
clearly identified candidate for state, district, county or municipal office,
and the treasurer of every political committee shall keep detailed accounts of
every sum of money or other thing of value received by him or her, including
all loans of money or things of value and of all expenditures and disbursements
made, liabilities incurred, by the candidate financial agent, person,
association or organization or committee, for political purposes, or by any of
the officers or members of the committee, or any person acting under its
authority or on its behalfor political committee. Any entity that is
not a political committee and makes reportable independent expenditures or
electioneering communications must keep detailed accounts of every sum of money
or other thing of value received by him or her received for the explicit
purpose of furthering any independent expenditure, independent expenditures,
electioneering communication or electioneering communications, and of all
disbursements made for independent expenditures or electioneering
communications.

(b) Every person or
association of personscandidate or political committee required to
keep detailed accounts under this section shall file with the officers
hereinafter prescribed a detailed itemized sworn statement:

(1) Of all financial
transactions, whenever the total exceeds $500$1,000 which have
taken place before the last Saturday in March, to be filed within six days
thereafter and annually whenever the total of all financial transactions
relating to an election exceeds $500$1,000;

(2) Of all financial
transactions which have taken place before the fifteenth day preceding each
primary or other election and subsequent to the previous statement, if any, to
be filed within four business days after the fifteenth day;

(3) Of all financial
transactions which have taken place before the thirteenth day after each
primary or other election and subsequent to the previous statement, if any, to
be filed within twenty business days after the thirteenth day; and

(4) Of all financial
transactions, whenever the total exceeds $500$1,000 or whenever
any loans are outstanding, which have taken place before the forty-third day
preceding the general or other election, day to be filed within
four business days after the forty-third day.

(c) Every person who
announces as a write-in candidate for any elective office and his or her
financial agent or election organization of any kind shall comply with all of
the requirements of this section after public announcement of the person's
candidacy has been made.

(d) For purposes of this
section, the term "financial transactions" includes all contributions
or loans received and all repayments of loans or expenditures made to
promote the candidacy of any person by any candidate or any organization
advocating or opposing the nomination, election or defeat of any candidate to
be voted onby any candidate or political committee.

(e) Candidates for the
office of conservation district supervisor elected pursuant to the provisions
of article twenty-one-a, chapter nineteen of this code are required to file
only the reports required by subdivisions (2) and (3), subsection (b) of this
section immediately prior to and after the primary election. Provided,
That during the election in the year 2008, the statements required by this
subsection shall be filed immediately prior to and after the general election.

§3-8-5a. Information
required in financial statement.

(a) Each financial
statement required by the provisions of this article, other than a disclosure
of independent expenditures pursuant to section two-a of this article or
electioneering communications pursuant to section two-b of this article, shall
contain only the following information:

(1) The name, residence and
mailing address and telephone number of each candidate, financial agent,
treasurer or person and the name, address and telephone number of each
association, organization or committee filing a financial statement.

(2) The balance of cash and
any other sum of money on hand at the beginning and the end of the period
covered by the financial statement.

(3) The name of any person
making a contribution and the amount of the contribution. If the total
contributions of any one person in any one election cycle amount to more than
$250, the recipient of the contribution shall request the residence and
mailing address of the contributor and, if the contributor is an individual,
his or her major business affiliation and occupation, and shall also
be reportedreport any such information it receives. A contribution totaling
more than $50 of currency of the United States or currency of any foreign
country by any one contributor is prohibited and a violation of section five-d
of this article. The statement on which contributions are required to be
reported by this subdivision may not distinguish between contributions made by
individuals and contributions made by partnerships, firms, associations,
committees, organizations or groups.

(4) The total amount of
contributions received during the period covered by the financial statement.

(5) The name, residence and
mailing address of any individual or the name and mailing address of each
lending institution making a loan or of the spouse cosigning a loan, as
appropriate, the amount of any loan received, the date and terms of the loan,
including the interest and repayment schedule, and a copy of the loan
agreement.

(6) The name, residence and
mailing address of any individual or the name and mailing address of each
partnership, firm, association, committee, organization or group having
previously made or cosigned a loan for which payment is made or a balance is
outstanding at the end of the period, together with the amount of repayment on
the loan made during the period and the balance at the end of the period.

(7) The total outstanding
balance of all loans at the end of the period.

(8) The name, residence and
mailing address of any person to whom each expenditure was made or liability
incurred, including expenditures made on behalf of a candidate or political
committee that otherwise are not made directly by the candidate or political
committee, together with the amount and purpose of each expenditure or
liability incurred and the date of each transaction.

(9) The total expenditure
for the nomination, election or defeat of a candidate or any person supporting,
aiding or opposing the nomination, election or defeat of any candidate in whose
behalf an expenditure was made or a contribution was given for the primary or
other election.

(10) The total amount of
expenditures made during the period covered by the financial statement.

(b) Any unexpended balance
at the time of making the financial statements herein provided for shall be
properly accounted for in that financial statement and shall appear as a
beginning balance in the next financial statement.

(c) Each financial
statement required by this section shall contain a separate section setting
forth the following information for each fund-raising event held during the
period covered by the financial statement:

(1) The type of event, date
held and address and name, if any, of the place where the event was held.

(2) All of the information
required by subdivision (3), subsection (a) of this section.

(3) The total of all moneys
received at the fund-raising event.

(4) The expenditures
incident to the fund-raising event.

(5) The net receipts of the
fund-raising event.

(d) When any lump sum
payment is made to any advertising agency or other disbursing person who does
not file a report of detailed accounts and verified financial statements as
required in this section, such lump sum expenditures shall be accounted for in
the same manner as provided for herein.

(e) Any contribution or
expenditure made by or on behalf of a candidate for public office, to any other
candidate or committee for a candidate for any public office in the same
election shall be accounted for in accordance with the provisions of this
section.

(f) No person may make any
contribution except from his, her or its own funds, unless such person
discloses in writing to the person required to report under this section the
name, residence, mailing address, major business affiliation and occupation of
the person which furnished the funds to the contributor. All such disclosures
shall be included in the statement required by this section.

(g) Any firm, association,
committee or fund permitted by section eight of this article to be a political
committee shall disclose on the financial statement its corporate or other
affiliation.

(h) No contribution may be
made, directly or indirectly, in a fictitious name, anonymously or by one
person through an agent, relative or other person so as to conceal the identity
of the source of the contribution or in any other manner so as to effect
concealment of the contributor's identity.

(i) No person may accept
any contribution for the purpose of influencing the nomination, election or
defeat of a candidate or for the passage or defeat of any ballot issue unless
the identity of the donor and the amount of the contribution is known and
reported.

(j)(i) When any person receives an anonymous
contribution which cannot be returned because the donor cannot be identified,
that contribution shall be donated to the General Revenue Fund of the state.
Any anonymous contribution shall be recorded as such on the candidate's
financial statement, but may not be expended for election expenses. At the time
of filing, the financial statement shall include a statement of distribution of
anonymous contributions, which total amount shall equal the total of all
anonymous contributions received during the period.

(k) Any membership
organization which raises funds for political purposes by payroll deduction,
assessing them as part of its membership dues or as a separate assessment, may
report the amount raised as follows:

(1) If the portion of
dues or assessments designated for political purposes equals $25 or less per
member over the course of a calendar year, the total amount raised for
political purposes through membership dues or assessments during the period is
reported by showing the amount required to be paid by each member and the
number of members.

(2) If the total payroll
deduction for political purposes of each participating member equals $25 or
less over the course of a calendar or fiscal year, as specified by the
organization, the organization shall report the total amount received for
political purposes through payroll deductions during the reporting period and,
to the maximum extent possible, the amount of each yearly payroll deduction
contribution level and the number of members contributing at each such
specified level. The membership organization shall maintain records of the name
and yearly payroll deduction amounts of each participating member.

(3) If any member
contributes to the membership organization through individual voluntary
contributions by means other than payroll deduction, membership dues, or
assessments as provided in this subsection, the reporting requirements of
subdivision (3), subsection (a) of this section shall apply. Funds raised for
political purposes must be segregated from the funds for other purposes and
listed in its report

(l)(j) Notwithstanding the provisions of section
five of this article or of the provisions of this section to the contrary, an
alternative reporting procedure may be followed by a political party committee
in filing financial reports for fund-raising events if the total profit does
not exceed $5,000 per year. A political party committee may report gross
receipts for the sale of food, beverages, services, novelty items, raffle
tickets or memorabilia, except that any receipt of more than $50 from an
individual or organization shall be reported as a contribution. A political
party committee using this alternative method of reporting shall report:

(i) The name of the
committee;

(ii) The type of fund-raising
activity undertaken;

(iii) The location where
the activity occurred;

(iv) The date of the
fundraiser;

(v) The name of any
individual who contributed more than $50 worth of items to be sold;

(vi) The name and amount
received from any person or organization purchasing more than $50 worth of
food, beverages, services, novelty items, raffle tickets or memorabilia;

(vii) The gross receipts of
the fundraiser; and

(viii) The date, amount,
purpose and name and address of each person or organization from whom items
with a fair market value of more than $50 were purchased for resale.

(a) The financial
statements provided for in this article shall be filed, by or on behalf
of candidates, with:

(1) The Secretary of State
for legislative offices, circuit judge and family court judge, and for
statewide and other offices to be nominated or elected by the voters of a
political division greater than a county;

(2) The clerk of the county
commission by candidates for offices to be nominated or elected by the voters
of a single county or a political division within a single county except
circuit judge and family court judge; or

(3) The proper municipal
officer by candidates for office to be nominated or elected to municipal
office.

(b) The statements may be
filed by mail, in person, or by facsimile or other electronic means of
transmission: Provided, That the financial statements filed by or on
behalf of candidates for Governor, Secretary of State, Attorney General,
Auditor, Treasurer, Commissioner of Agriculture, and Supreme Court of
Appeals, political action committees, ballot issue committees,
electioneering communications, and independent expenditures shall be filed
electronically by the means of an Internet program that has been established
by the Secretary of State on forms or in a format prescribed by the Secretary
of State: Provided, however, That after January 1, 2018, unless a
committee has been granted an exemption in case of hardship pursuant to
subsection (c) of this section, all such statements required to be filed with
the Secretary of State, on or behalf of a candidate for any elective office,
shall be filed electronically by means of the Internet program that has been
established by the Secretary of State. If through or by no fault of the
candidate, the candidate is unable to file the campaign financial statement,
the candidate shall then file said statement in person, via facsimile or other
electronic means of transmission, or by certified mail postmarked at the first
reasonable opportunity.

(c) Committees required to
report electronically may apply to the State Election Commission for an
exemption from mandatory electronic filing in the case of hardship. An
exemption may be granted at the discretion of the State Election Commission.

(d) For purposes of this
article, the filing date of a financial statement shall, in the case of
mailing, be the date of the postmark of the United States Postal Service, and
in the case of hand delivery or delivery by facsimile or other electronic means
of transmission, the date delivered to the office of the Secretary of State or
to the office of the clerk of the county commission, in accordance with the
provisions of subsection (a) of this section, during regular business hours of
that office.

(e) The sworn financial
statements required to be filed by this section with the Secretary of State
shall be posted on the Internet by the Secretary of State within ten business
days from the date the financial statement iswas filed.

§3-8-5d. Offenses and
penalties.

(a) Any person who makes or
receives a contribution of currency of the United States or currency of any
foreign country of more than $50 in value is guilty of a misdemeanor
and, upon conviction, shall be fined a sum equal to three times the amount of
the contribution.

(b) Notwithstanding any
provision of section twenty-four, article nine of this chapter to the contrary,
a criminal prosecution or civil action for a violation of this article may be
commenced within five years after the violation occurred.

(c) No person required to
report under this article shall be found in violation of this article if any
person, firm, association or committee making a contribution has provided false
information to such person: Provided, That any person, firm, association
or committee who provides false information to a person required to report
under this article is guilty of a misdemeanor and, subject to the penalties
provided in section twenty-three, article nine of this chapter.

§3-8-5f. Loans to
candidates, organizations or persons for election purposes.

(a) No candidate, financial
agent, person or association of persons or organization advocating or opposing
the nomination or election of any candidate or the passage or defeat of any
issue or item to be voted upon may receive any money or any other thing of
value as a loan toward election expenses except from the candidate, his or her
spouse or a lending institution. All loans shall be evidenced by a written agreement
executed by the lender, whether the candidate, his or her spouse, or the
lending institution. Such agreement shall state the date and amount of the
loan, the terms, including interest and repayment schedule, and a description
of the collateral, if any, and the full names and addresses of all parties to
the agreement. A copy of the agreement shall be filed with the financial
statement next required after the loan is executed.

(b) Loans may only be made
in the regular course of business by a lending institution which is a state
bank, a federally chartered depository institution (including a national bank)
or a depository institution whose deposits are insured by the federal deposit
insurance corporation or the national credit union administration. Such loans
shall be subject to the following requirements:

(1) Endorsements or
guarantees of such loans may be made by the candidate or his or her spouse;

(2) Endorsements or
guarantees of such loans by parties other than the candidate or his or her
spouse may be made only to the extent of the contribution limits; established
in this article; and

(3) No other form of
security shall be furnished in connection with such loans by any party other
than the candidate or his or her spouse.

(c) The provisions of this
section shall not be construed to prohibit a candidate or his or her spouse
from lending money to the candidate or to the candidate's political committee: Provided,
That the spouse of a candidate may not borrow money from a third party other
than a lending institution authorized to make loans under this section for the
purposes of lending money to the candidate or the candidate's political
committee.

(a) Any person
candidate financial agent or treasurer of a political party
committee who fails to file a sworn, itemized statement required by this
article within the time limitations specified in this article or who willfully
files a grossly incomplete or grossly inaccurate statement is guilty of a
misdemeanor and, upon conviction thereof, shall be fined not less than $500 or
confined in jail for not more than one year, or both, fined and confinedin the discretion of the court. Sixty days after any primary or other
election, the Secretary of State, county clerk or municipal recorder, as the
case may be, shall give notice of any failure to file a sworn statement or the
filing of any grossly incomplete or grossly inaccurate statement by any person,
candidate, financial agent or treasurer of a political party committee and
forward copies of any grossly incomplete or grossly inaccurate statement to the
prosecuting attorney of the county where the person, candidate, financial agent
or treasurer resides, is located or has its principal place of business.

(b) (1) Any person
candidate financial agent or treasurer of a political party
committee who fails to file a sworn, itemized statement as required in this
article or who files a grossly incomplete or grossly inaccurate statement may
be assessed a civil penalty by the Secretary of State of $25 a day for each day
after the due date the statement is delinquent, grossly incomplete or grossly
inaccurate. Sixty days after any primary or other election, the county clerk
shall give notice to the Secretary of State of any failure to file a sworn
statement or the filing of any grossly incomplete or grossly inaccurate
statement by any person, candidate, financial agent or treasurer of a political
party committee and forward copies of such delinquent, incomplete or inaccurate
statements to the Secretary of State.

(2) A civil penalty
assessed pursuant to this section shall be payable to the State of West
Virginia and is collectable as authorized by law for the collection of debts.

(3) The Secretary of State
may negotiate and enter into settlement agreements for the payment of civil
penalties assessed as a result of the filing of a delinquent, grossly
incomplete or inaccurate statement.

(4) The Secretary of State
and county clerk may review and audit any sworn statement required to be filed
pursuant to this article. The State Election Commission shall propose
legislative rules for promulgation, in accordance with chapter twenty-nine-a of
this code, to establish procedures for the assessment of civil penalties as
provided in this section.

(c) (1) NoAny
candidate, whether nominated by a primary election or appointed by
executive committee or executive committee chair, who has failed to file anya sworn statement as required by this article, relating to the
immediately preceding primary election for any office by the eighty-fourth day
before the general election, is disqualified and may not have his or her name appearplaced on the general election ballot. The provisions of subsection (d),
section five-b of this article notwithstanding, any sworn statement filed after
the deadline required by section five of this article must be received in the
office indicated by subsection (a), section five-b of this article by the close
of business on the eighty-fourth day before the general election.

(2) It is unlawful to issue
a commission or certificate of election, or to administer the oath of office,
to any person elected to any public office who has failed to file anya
sworn statement as required by this article and no person may enter upon
the duties of his or her office until he or she has filed such statement, nor
may he or she receive any salary or emolument for any period prior to the
filing of the statement.

(3) The vacancy on the
ballot created by the disqualification in this subsection is subject to section
nineteen, article five, chapter three of this code.

(d) As used in this
section, "grossly" means substantive and material, and specifically
includes false or misleading representations and acts of omissions.

(e) The Secretary of State
shall provide by rule protocols for written notice via certified mail, return
receipt requested, to the person, candidate, financial agent or treasurer of a
political party committee that is not in compliance with the requirements of
this section. With respect to a violation of subsection (c) of this section,
the notice shall be provided sixty days after any primary or other election.

(a) An officer, agent or
person acting on behalf of any corporation, whether incorporated under the laws
of this or any other state or of a foreign country, may not pay, give, lend or
authorize to be paid, anyNo money or other thing of value belonging
to thea corporation may be made as a contribution to any political
committee.

(b) A person may not
solicit or receive any contribution from any
corporation to any candidate or candidate’s campaign for nomination or election
to any statewide office or any other elective office in the state or any of its
subdivisions.

(b) A person may not
solicit or receive any payment, contribution or other thing from any
corporation or from any officer, agent or other person acting on behalf of the
corporation to any candidate or candidate’s campaign for nomination or election
to any statewide office or any other elective office in the state or any of its
subdivisions.

(c)(1) The provisions of
this section do not prohibit a corporation from soliciting, through any officer,
agent or person acting on behalf of the corporation, contributions to a
separate segregated fund to be used for political purposes. Any separate
segregated fund is considered a political action committee for the purpose of
this article and is subject to all reporting requirements applicable to
political action committees;

(2) It is unlawful for:

(A) A corporation or
separate segregated fund to make a primary or other election contribution or
expenditure by using money or anything of value secured: (i) By physical force,
job discrimination or financial reprisal; (ii) by the threat of force, job
discrimination or financial reprisal; or (iii) as a condition of employment;

(B) Any person soliciting a
stockholder or executive or administrative personnel and members of their
families for a contribution to a corporation or separate segregated fund to
fail to inform the person solicited of the political purposes of the separate
segregated fund at the time of the solicitation;

(C) Any person soliciting
any other person for a contribution to a corporation or separate segregated
fund to fail to inform the person solicited at the time of the solicitation of
his or her right to refuse to contribute without any reprisal;

(D) A separate segregated
fund established by a corporation: (i) To solicit contributions to the fund
from any person other than the corporation’s stockholders and their families
and its executive or administrative personnel and their families; or (ii) to
contribute any corporate funds;

(E) A separate segregated
fund established by a corporation to receive contributions to the fund from any
person other than the corporation’s stockholders and their immediate families
and its executive or administrative personnel and their immediate families;

(F) A corporation to engage
in job discrimination or to discriminate in job promotion or transfer because
of an employee’s failure to make a contribution to the corporation or a
separate segregated fund;

(G) A separate
segregated fundcorporation to make anya contribution
directly or indirectly, in excess of $1,000 in connection with or on behalf
of any campaign for nomination or election to any elective office in the state
or any of its subdivisions, or in connection with or on behalf of any committee
or other organization or person engaged in furthering, advancing, supporting or
aiding the nomination or election of any candidate for any such office;

(H) A corporation to
pay, give or lend or to authorize payment, giving or lending of any moneys or
other things of value belonging to the corporation to a separate segregated fund for the purpose of
making a contribution to a candidate or a candidate’s committee. This provision
does not prohibit a separate segregated fund from using the property, real or
personal, facilities and equipment of a corporation solely to establish,
administer and solicit contributions to the fund, subject to the rules of the
State Election Commission as provided in subsection (d) of this section: Provided,
That any such corporation shall also permit any group of its employees
represented by a bona fide political action committee to use the real property
of the corporation solely to establish, administer and solicit contributions to
the fund of the political action committee, subject to the rules of the State
Election Commission promulgated in accordance with said subsection.

(3) For the purposes of
this section, the term "executive or administrative personnel" means
individuals employed by a corporation who are paid on a salary rather than
hourly basis and who have policy-making, managerial, professional or
supervisory responsibilities.

(d) Any person or
corporation violating any provision of this section is guilty of a misdemeanor
and, upon conviction thereof, shall be fined not more than $10,000. A
corporation may not reimburse any person the amount of any fine imposed
pursuant to this section.

(e) To ensure uniform
administration and application of the provisions of this section and of those
of the Federal Election Campaign Act Amendments of 1976 relating to corporate
contributions, the State Election Commission shall propose rules for
legislative approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code to implement the provisions of this section
consistent, insofar as practicable, with the rules and regulations promulgated
by the Federal Election Commission to carry out similar or identical provisions
of 2 U.S.C. §441b52 U.S.C. § 30118.

(f) In addition to the
powers and duties set forth in article one-a of this chapter, the State
Election Commission has the following powers and duties:

(1) To investigate, upon
complaint or on its own initiative, any alleged violations or irregularities
of this article.

(2) To administer oaths and
affirmations, issue subpoenas for the attendance of witnesses, issue subpoenas
duces tecum to compel the production of books, papers, records and all other
evidence necessary to any investigation.

(3) To involve the aid of
any circuit court in the execution of its subpoena power.

(4) To report any alleged
violations of this article to the appropriate prosecuting attorney having
jurisdiction, which prosecuting attorney shall, upon determining that a
reason to believe that a violation has occurred, present to the grand jury
such alleged violations, together with all evidence relating thereto, no later
than the next term of court after receiving the report.

(g) The Attorney General
shall, when requested, provide legal and investigative assistance to the State
Election Commission.

(h) Any investigation,
either upon complaint or initiative, shall be conducted in an executive session
of the State Election Commission and shall remain undisclosed except to the
persons or entities being investigated or upon an indictment by a grand
jury.

(i) Any person who
discloses the fact of any complaint, investigation or report or any part
thereof, or any proceedings thereon, is guilty of a misdemeanor and, upon
conviction thereof, shall be fined not less than $1,000, nor more than $5,000,
and shall be confined in jail not less than six months nor more than one year.

(j)(i) The amendments to this section enacted
during the second extraordinary session of 2008 are intended to conform to the
existing proscription to Constitutionally permissible limits and not to create
a new offense or offenses.

(k)(j) The effective date of the amendments to
this section enacted during the second extraordinary legislative session of
2008 is October 1, 2008.

§3-8-9. Lawful and
unlawful election expenses; public opinion polls and limiting their purposes;
limitation upon expenses; use of advertising agencies and reporting
requirements; delegation of expenditures.

(a) No financial agent or
treasurer of a political committee shall pay, give or lend, either directly or
indirectly, any money or other thing of value for any election expenses, except
for the following purposes:

(1) For rent, maintenance,
office equipment and other furnishing of offices to be used as political
headquarters and for the payment of necessary clerks, stenographers, typists,
janitors and messengers actually employed therein;

(2) In the case of a
candidate who does not maintain a headquarters, for reasonable office expenses,
including, but not limited to, filing cabinets and other office equipment and
furnishings, computers, computer hardware and software, scanners, typewriters,
calculators, audio visual equipment, the rental of the use of the same, or for
the payment for the shared use of same with the candidate's business and for
the payment of necessary clerks, stenographers and typists actually employed;

(3) For printing and
distributing books, pamphlets, circulars and other printed matter and radio and
television broadcasting and painting, printing and posting signs, banners and
other advertisements, including contributions to charitable, educational or cultural
events, for the promotion of the candidate, the candidate's name or an issue on
the ballot;

(4) For renting and
decorating halls for public meetings and political conventions, for advertising
public meetings and for the payment of traveling expenses of speakers and
musicians at such meetings;

(5) For the necessary
traveling and hotel expenses of candidates, political agents and committees and
for stationery, postage, telegrams, telephone, express, freight and public
messenger service;

(6) For preparing,
circulating and filing petitions for nomination of candidates;

(7) For examining the lists
of registered voters, securing copies thereof, investigating the right to vote
of the persons listed therein and conducting proceedings to prevent unlawful
registration or voting;

(8) For conveying voters to
and from the polls;

(9) For securing
publication in newspapers and by radio and television broadcasting of
documents, articles, speeches, arguments and any information relating to any
political issue, candidate or question or proposition submitted to a vote;

(10) For conducting public
opinion poll or polls. For the purpose of this section, the phrase
"conducting of public opinion poll or polls" shall mean and be
limited to the gathering, collection, collation and evaluation of information
reflecting public opinion, needs and preferences as to any candidate, group of
candidates, party, issue or issues. No such poll shall be deceptively designed
or intentionally conducted in a manner calculated to advocate the election or
defeat of any candidate or group of candidates or calculated to influence any
person or persons so polled to vote for or against any candidate, group of
candidates, proposition or other matter to be voted on by the public at any
election: Provided, That nothing herein shall prevent the use of the
results of any such poll or polls to further, promote or enhance the election
of any candidate or group of candidates or the approval or defeat of any
proposition or other matter to be voted on by the public at any election;

(11) For legitimate
advertising agency services, including commissions, in connection with any
campaign activity for which payment is authorized by subdivisions (3), (4),
(5), (6), (7), (9) and (10) of this subsection;

(12) For the purchase of
memorials, flowers or citations by political party executive committees or
political action committees representing a political party;

(13) For the purchase of
nominal noncash expressions of appreciation following the close of the polls of
an election or within thirty days thereafter;

(14) For the payment of
dues or subscriptions to any national, state or local committee of any
political party;

(15) For contributions to a
county party executive committee, state party executive committee or a state
party legislative caucus politicalcampaign committee; and

(16) For contributions to a
candidate committee: Provided, That a candidate committee may not
contribute to another candidate committee except as otherwise provided by
section ten of this article.

(b) A political action
committee may not contribute to another political action committee or receive
contributions from another political action committee Provided,
That a political action committee may receive contributions from its national
affiliate, if anyif the contribution is earmarked for a contribution to
any candidate committee or political party.

(c) Every liability
incurred and payment made shall be for the fair market value of the services
rendered.

(d) Every advertising
agency subject to the provisions of this article shall file, in the manner and
form required by section five-a of this article, the financial statements
required by section five of this article at the times required therein and
include therein, in itemized detail, all receipts from and expenditures made on
behalf of a candidate, financial agent or treasurer of a political party
committee.

(e) Any candidate may
designate a financial agent by a writing duly subscribed by himthe
candidate which shall be in such form and filed in accordance with the
provisions of section four of this article.

§3-8-10. Use of certain
contributions.

(a) Notwithstanding any
provision of this code to the contrary, amounts received by a candidate as
contributions that are in excess of any amount necessary to defray his or her
expenditures may be:

(1) Used by the candidate
to defray any usual and customary expenses incurred in connection with his or
her duties as a holder of public office; and

(2) Contributed by the
candidate after the general election, to:

(A) Any charitable
organization or subsequent campaign by the same candidate, without limitation;

(B) Any national committee
in accordance with federal requirements;

(C) Any state party
executive committee or state party legislative caucus campaign committee;
in an amount not to exceed $15,000 in a calendar year; or

(D) Any local committee of
any political party or any other candidate for public office, in accordance
with the existing limitations on contributions.

(b) The State Election
Commission shall promulgate emergency and legislative rules, in accordance with
the provisions of chapter twenty-nine-a of this code, to establish guidelines
for the administration of this section.

§3-8-11. Specific acts
forbidden; penalties.

(a) Any person who shall,
directly or indirectly, by himself, or by any other person on his or her
behalf, make use of, or threaten to make use of, any force, violence or
restraint, or inflict, or threaten to inflict, any damage, harm or loss, upon
or against any person, or by any other means attempt to intimidate or exert any
undue influence, in order to induce such person to vote or refrain from voting,
or on account of such person having voted or refrained from voting, at any
election, or who shall, by abduction, duress or any fraudulent device or
contrivance, impede or prevent the free exercise of the suffrage by any
elector, or shall thereby compel, induce or prevail upon any elector either to
vote or refrain from voting for or against any particular candidate or measure;
or

(b) Any person who, being
an employer, or acting for or on behalf of any employer, shall give any notice
or information to his or her employees, containing any threat, either
express or implied, intended or calculated to influence the political view
or actions of the workmen or employees;decisions of the workmen or
employees to vote or refrain from voting in any election, vote for or against
any candidate or any candidate of any political party, contribute to any
candidate, party, or political committee, or make any contribution for any
independent expenditure or electioneering communication: Provided, That
information provided that expresses the opinion of the employer on any
candidate, party, political committee or ballot issue or the effects of the
ballot issue or the policies advocated by any candidate on the employer or on the
state is not a forbidden act; or

(c) Any person who shall,
knowingly, make or publish, or cause to be made or published, any false
statement in regard to any candidate, which statement is intended or tends to
affect any voting at any election whatever; or

(d) Any person who shall
pay any owner, publisher, editor or employee or any newspaper or other
periodical, to advocate or oppose editorially, any candidate for nomination or
election, or any political party, or any measure to be submitted to the vote of
the people without reporting this as an independent expenditure or
electioneering communication, where appropriate; or any owner, publisher,
editor or employee, who shall solicit or accept such payment without
reporting this as an independent expenditure or electioneering communication,
where appropriate, is guilty of a misdemeanor and, on conviction
thereof, shall be fined not more than $10,000, or confined in jail for not more
than one year, or, in the discretion of the court, shall be subject to both
such fine and imprisonment.

§3-8-12. Additional acts
forbidden; circulation of written matter; newspaper advertising; solicitation
of contributions; intimidation and coercion of employees; promise of employment
or other benefits; limitations on contributions; public contractors; penalty.

(a) A person may not
publish, issue or circulate, or cause to be published, issued or circulated,
any anonymous letter, circular, placard, radio or television advertisement or
other publication supporting or aiding the election or defeat of a clearly
identified candidate.

(b)(a) An owner, publisher, editor or employee of
a newspaper or other periodical may not insert, either in its advertising or
reading columns, any matter, paid for or to be paid for, which tends to
influence the voting atexpressly advocates for or against any candidate
or ballot issue in any election, unless directly designating it as a paid
advertisement and stating the name of the person authorizing its publication
and the candidate in whose behalf it is published.

(c)(b) A person may not, in any room or building
occupied for the discharge of official duties by any officer or employee of the
state or a political subdivision of the state, solicit orally or by written
communication delivered within the room or building, or in any other manner,
any contribution of money or other thing of value for any party or political
purpose, from any postmaster or any other officer or employee of the federal
government, or officer or employee of the state, or a political subdivision of the
state. An officer, agent, clerk or employee of the federal government, or of
this state, or any political subdivision of the state, who may have charge or
control of any building, office or room, occupied for any official purpose, may
not knowingly permit any person to enter any building, office or room, occupied
for any official purpose for the purpose of soliciting or receiving any
political assessments from, or delivering or giving written solicitations for,
or any notice of, any political assessments to, any officer or employee of the
state, or a political subdivision of the state.

(d)(c) Except as provided in section eight of
this article, a person entering into any contract with the state or its subdivisions,
or any department or agency of the state, either for rendition of personal
services or furnishing any material, supplies or equipment or selling any land
or building to the state, or its subdivisions, or any department or agency of
the state, if payment for the performance of the contract or payment for the
material, supplies, equipment, land or building is to be made, in whole or in
part, from public funds may not, during the period of negotiation for or
performance under the contract or furnishing of materials, supplies, equipment,
land or buildings, directly or indirectly, make any contribution or solicit
any contribution to any political party, political committee that
makes contributions to any candidate or political party or candidate for
public office or to any person for political purposes or use nor may any
person or firm solicit any contributions for any purposeother than
independent expenditures during anythat period.

(e)(d) A person may not, directly or indirectly,
promise any employment, position, work, compensation or other benefit provided
for, or made possible, in whole or in part, by act of the Legislature, to any
person as consideration, favor or reward for any political activity for the
support of or opposition to any candidate, or any political party in any
election.

(e) Except as provided
in section eight of this article, a person may not directly or indirectly, make
any contribution in excess of the value of $1,000 in connection with any
campaign for nomination or election to or on behalf of any statewide office, in
connection with any other campaign for nomination or election to or on behalf
of any other elective office in the state or any of its subdivisions, or in
connection with or on behalf of any person engaged in furthering, advancing,
supporting or aiding the nomination or election of any candidate for any of the
offices.

(g) A political
organization (as defined in Section 527(e)(1) of the Internal Revenue Code of
1986) may not solicit or accept contributions until it has notified the
Secretary of State of its existence and of the purposes for which it was
formed. During the two-year election cycle, a political organization (as
defined in Section 527 (e) (1) of the Internal Revenue Code of 1986) may not
accept contributions totaling more than $1,000 from any one person prior to the
primary election and contributions totaling more than $1,000 from any one
person after the primary and before the general election.

(h) It is unlawful for
any person to create, establish or organize more than one political
organization (as defined in Section 527(e)(1) of the Internal Revenue Code of
1986) with the intent to avoid or evade the contribution limitations contained
in subsection (g) of this section.

(i) Notwithstanding the
provisions of subsection (f) of this section to the contrary, a person may not,
directly or indirectly, make contributions to a state party executive committee
or state party legislative caucus committee which, in the aggregate, exceed the
value of $1,000 in any calendar year.

(e) Except as provided
in section eight of this article, a person may not make contributions to any
candidate or, his or her authorized campaign committees with respect to any
election that in the aggregate exceed $2,700.

(f) A person may not
make contributions to state, district or county party committees, which, in the
combined aggregate for all the committees, exceed the value of $10,000 in any
calendar year.

(g) A person may not
make contributions to any caucus campaign committee, which in the aggregate,
exceed the value of $10,000 in any calendar year. However, a person may make a
contribution in any amount to any political action committee that only makes
independent expenditures. The independent expenditure only committee may not make
contributions to any candidate or his or her authorized campaign committee, any
political party committee, any caucus campaign committee or any political
action committee other than another independent expenditure only political
action committee.

(h) A person may not make
contributions to any political action committee, which in the aggregate, exceed
the value of $5,000 in any calendar year.

(i) The contribution
limitations in subsection (e) of this section shall be increased by the percent
difference between the most recent available monthly consumer price index
published by the United States bureau of labor statistics and such consumer
price index published for the same month two years previously. The increased
contribution limitation shall be in effect for the two-year period beginning on
the first day following the date of the last general election in the year
preceding the year in which the contribution limitation is increased and ending
on the date of the next general election. For example, an increase in the
contribution limitation made in January 2019 is effective from November 7, 2018,
to November 3, 2020. The contribution limitations in this chapter shall be
increased only in odd-numbered years.

(ii) For purposes of
this section the term base period means calendar year 2017.

(iii) Rounding of price
index increases. If any amount after the increases under this section is not a
multiple of $100, such amount shall be rounded to the nearest multiple of $100.

(iv) In January of every
odd numbered year, the State Elections Commission shall publish the amount of
the contribution limitation in effect and place such information on its Website.

(j) The limitations on
contributions contained in this section do not apply to transfers between and
among a state party executive committee, or a state party's legislativea
caucus politicalcampaign committee from national
committees of the same political party: Provided, That transfers
permitted by this subsection may not exceed $50,000 in the aggregate in any
calendar year to any state party executive committee or state party legislative
caucus political committee: Provided, however, That the moneys
transferred may only be used for voter registration and get-out-the-vote
activities of the state committees.

(k) A person may not
solicit any contribution, other than contributions to a campaign for or against
a county or local government ballot issue, from any nonelective salaried
employee of the state government or of any of its subdivisions: Provided,
That in no event may any person acting in a supervisory role solicit a person
who is a subordinate employee for any contribution. A person may not coerce or
intimidate any nonelective salaried employee into making a contribution. A
person may not coerce or intimidate any nonsalaried employee of the state
government or any of its subdivisions into engaging in or deterring from
any form of political activity. The provisions of this subsection may not be
construed to prevent any employee from making a contribution or from engaging
in political activity voluntarily without coercion, intimidation or
solicitation.

(l) A person may not
solicit a contribution from any other person without informing the other person
at the time of the solicitation of the amount of any commission, remuneration
or other compensation that the solicitor or any other person will receive or
expect to receive as a direct result of the contribution being successfully
collected. Nothing in this subsection may be construed to apply to
solicitations of contributions made by any person serving as an unpaid
volunteer.

(m) A person may not place
any letter, circular, flyer, advertisement, election paraphernalia,
solicitation material or other printed or published item tending to
influence voting atexpressly advocating the election or defeat of any
candidate or a vote for or against any ballot issue in any election in a
roadside receptacle unless it is: (1) Approved for placement into a roadside
receptacle by the business or entity owning the receptacle; and (2) contains a
written acknowledgment of the approval. This subdivision does not apply to any
printed material contained in a newspaper or periodical published or
distributed by the owner of the receptacle. The term "roadside receptacle"
means any container placed by a newspaper or periodical business or entity to
facilitate home or personal delivery of a designated newspaper or periodical to
its customers.

(n) Any person violating
any provision of this section is guilty of a misdemeanor and, upon conviction
thereof, shall be fined not more than $1,000, or confined in jail for not more
than one year, or, both fined and confined.

(o) The provisions of
subsection (k) of this section, permitting contributions to a campaign for or
against a county or local government ballot issue shall become operable on and
after January 1, 2005.

(p) The limitations on
contributions established by subsection (g) of this section do not apply to
contributions made for the purpose of supporting or opposing a ballot issue,
including a Constitutional amendment.

NOTE: The purpose of this bill is
to make significant revisions to the law regulating election financing.

Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.